In HMRC, IR35

The PCG have spoken out regarding their view that IR35 regulations should not affect contractors who are working on several different projects for the same client. It is the view of PCG that HMRC should only be concerned with the nature of the arrangement between the contractor and client and not the duration of the agreement.

The PCG believe that contractors must be able to prove that they are working on separate projects, even if this is for the same client, and that this is not the same as ongoing work. If the contractor can prove this, it is the belief of the PCG that HMRC will “not have a case”. It is also important that contractors can prove to HMRC, if necessary, that they have an “unfettered right of substitution” and that through their contractual agreement and subsequent working practices they have control over the work they carry out.

PCG said: “HMRC must prove that personal service, control and mutuality of obligations (the expectation that work will be offered and accepted) existed in the engagement.”

Managing director of Brookson, Martin Hesketh responded: “This news article confirms the importance of contractual documentation. Not only should contractors who work on multiple projects ensure that there are contracts in place for each, it is essential that you read the contracts and ensure that they are consistent with your working practices and accurately reflect your relationship as an independent contractor with your client.”

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